Shares in Taiwan broke records at the end of yesterday’s session after contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) hit a fresh closing-high amid enthusiasm toward artificial intelligence (AI) development, dealers said.
The TAIEX ended up 382.67 points, or 1.45 percent, at the day’s high of 26,761.06. Turnover totaled NT$463.09 billion (US$15.22 billion).
“The local main board has repeatedly hit new closing highs in the past few sessions as investors continued to embrace high hopes about AI applications, taking cues from a strong showing in shares of US-based AI chip designer Nvidia Corp,” Hua Nan Securities Co (華南永昌證券) analyst Kevin Su (蘇俊宏) said.
Photo: CNA
“TSMC, again, served as a driver to the TAIEX’s upturn, as the stock, which appeared cheaper in valuation than Nvidia shares, kept playing catch-up,” Su said, referring to TSMC’s price-to-earnings multiple of below 25, compared with Nvidia’s more than 30.
TSMC shares rose 2.56 percent to close at the day’s high of NT$1,400, contributing about 280 points to the TAIEX’s rise and sending the bellwether electronics index up 2.08 percent.
TSMC’s buying spread to other large-cap semiconductor stocks, with smartphone integrate circuit designer MediaTek Inc (聯發科) rising 3.12 percent to end at NT$1,320. Memory chip suppliers continued to benefit from product price hikes as Winbond Electronics Corp (華邦電) soared 7.78 percent to close at NT$38.80 and Nanya Technology Corp (南亞科技) gained 4.14 percent to end at NT$83.
The AI frenzy also boosted other hardware suppliers, Su said.
Quanta Computer Inc (廣達), an AI server maker, rose 2.04 percent to close at NT$300, and rival Wistron Corp (緯創) added 2.68 percent to end at NT$153.50. iPhone assembler and AI server supplier Hon Hai Precision Industry Co (鴻海精密) underperformed its counterparts, up only 0.44 percent to close at NT$226.50.
“Despite the TAIEX’s solid gains, non-tech stocks largely moved in weakness as recent furlough reports showed the old economy industry fell victim to the US tariffs,” Su said.
Formosa Plastics Corp (台塑) lost 2.27 percent to close at NT$36.65, and Formosa Chemicals & Fibre Corp (台化) shed 3 percent to end at NT$27.50. China Steel Corp (中鋼), the largest steel maker in Taiwan, dropped 1.04 percent to close at NT $19, while Chung Hung Steel Corp (中鴻鋼鐵) ended unchanged at NT$15.50.
On profit taking from its recent strong gains, Teco Electric & Machinery Co (東元電機) lost 0.87 percent to close at NT$113.50, but Fortune Electric Co (華城電機) rose 1.6 percent to end at NT$572.
In the financial sector, which lost 0.63 percent, Fubon Financial Holding Co (富邦金控) fell 1.03 percent to close at NT$86.50, while Cathay Financial Holding Co (國泰金控) ended unchanged at NT$65.
“Washington will release the September nonfarm payroll data today, which is expected to provide more clues about how the Federal Reserve will carry out its rate cut cycle,” Su said.
The number of Taiwanese working in the US rose to a record high of 137,000 last year, driven largely by Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) rapid overseas expansion, according to government data released yesterday. A total of 666,000 Taiwanese nationals were employed abroad last year, an increase of 45,000 from 2023 and the highest level since the COVID-19 pandemic, data from the Directorate-General of Budget, Accounting and Statistics (DGBAS) showed. Overseas employment had steadily increased between 2009 and 2019, peaking at 739,000, before plunging to 319,000 in 2021 amid US-China trade tensions, global supply chain shifts, reshoring by Taiwanese companies and
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) received about NT$147 billion (US$4.71 billion) in subsidies from the US, Japanese, German and Chinese governments over the past two years for its global expansion. Financial data compiled by the world’s largest contract chipmaker showed the company secured NT$4.77 billion in subsidies from the governments in the third quarter, bringing the total for the first three quarters of the year to about NT$71.9 billion. Along with the NT$75.16 billion in financial aid TSMC received last year, the chipmaker obtained NT$147 billion in subsidies in almost two years, the data showed. The subsidies received by its subsidiaries —
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